Auxly Cannabis Group Inc (CBWTF)

[Spetty772002]

Corum, here is the best article that I've found. I went through a lot of filings etc trying to do figure out the actual share count, and after some googling and researching, I eventually found this. There are a couple of things to note however:

1) there are two versions of this stock, a US version (CBWTF) and a Canadian version (CBW.V). The Canadian version is priced in CDN, the US version in USD. I believe that everything in this article pertains to the Canadian version, so for the US version (since we're on the board for the US version) would need to be reduced by the exchange rate. I would also note that the share price has dropped since the time this article was published so the market cap is lower now.

2) Remember to take into account that best I can tell they have approx $140 million cash on hand currently. If all of the warrants are exercised, they'll obtain something in the area of another $100 million ($58 million from warrants from the most recent $100 million offering, along with any remaining unexercised warrants with exercise prices of $1 and $1.50). They also now own KoLab which holds a cultivation license and allows them to actually distribute their own marijuana, potentially on better terms than their streaming partners could. They also own 18% of the only marijuana dispensary with a franchise license as well as an exclusive distribution deal with them, they have exclusive distribution partnerships with an independent pharmacy chain as well as a convenience store chain and probably many other things I'm not even thinking of. Basically the vast majority of these shares have been put to good use in building for the future, and though the value in them hasn't yet been recognized, they will pay off in many multiples of what it cost them in the future.

So while I will say that I wish that the share structure were a little more shareholder-friendly, I still think they will ultimately end up with 750 million total shares or less outstanding when it's all said and done, and based on the #'s I've done, even assuming that their revenue/gram and adjusted EBITA/gram are lower than anticipated due to the prices in the recreational market potentially being somewhat lower due to government policies (i.e. capping selling prices in certain provinces), I still come up with a future share price of at least $20/share (and probably higher) in the next 24-36 months.

http://thedeepdive.ca/brief-mixed-emotions-cannabis-wheaton-income/